Returning a deposit: timescales and a clean process

Most disputes start with a delay and a vague explanation. A clear, itemised proposal within days resolves the majority of them.

4 min read · Updated 21 August 2026

Overview

Once a tenancy ends and the tenant requests their deposit, the schemes require the agreed amount to be returned within ten days of agreement. The process works best when the landlord moves quickly: check out on the day the keys come back, prepare an itemised proposal within a few days, send it with the evidence and release the undisputed balance immediately. Delay is read as bad faith and often turns a small deduction into a full dispute.

Why it matters

Speed and clarity cost nothing and materially reduce the number of claims that reach adjudication. They also protect your reputation in a market where tenants review landlords.

Legal requirements

Agreed deposit amounts must be returned within ten days of the agreement.
Undisputed sums must be released even where part of the deposit is contested.
Deductions must be itemised and justified against the tenancy agreement.
The landlord bears the burden of proving any deduction in adjudication.

Common mistakes

Waiting for a contractor invoice before saying anything to the tenant.
Sending a single figure with no breakdown.
Holding the whole deposit over a small disputed item.
Failing to give the tenant a chance to comment before starting the scheme process.

Practical guidance

Carry out check out with the tenant present if possible and share the report the same week.
Send an itemised proposal with photographs and quotes within seven days.
Release the undisputed amount straight away and say so clearly.
Offer a short window for the tenant to respond before raising a formal dispute.

A simple closing sequence

Day one, keys returned and check out inspection completed with photographs. Day two, meter readings and final rent position confirmed. Day three to five, quotes obtained for any damage. Day six or seven, itemised proposal sent to the tenant with the evidence attached and the undisputed amount released. Day fourteen, either agreement reached and the balance paid, or the scheme dispute process started with the bundle already prepared.

Writing the proposal

Keep it to one page with a table. Column one, the item. Column two, the amount. Column three, the clause of the agreement and the evidence reference. Add a short line for depreciation where it applies. Finish with the total and a clear statement of the amount being released now. Tenants who receive that document usually accept it or negotiate one line, rather than disputing the lot.

Frequently asked questions

How long do I have to return the deposit?

Ten days from the point the amount is agreed. There is no fixed deadline to reach agreement, but unexplained delay counts against you in adjudication.

Can I hold the deposit until repairs are finished?

You can propose a deduction supported by quotes rather than waiting for completed work. Holding the whole deposit indefinitely is not acceptable.

What if the tenant does not respond?

Follow the scheme's process for unresponsive tenants. Custodial schemes have a single claim route, and insured schemes have their own procedure for non response.

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This guide is general information for UK landlords and letting agents, not legal advice. Rules differ across England, Wales, Scotland and Northern Ireland — check your local requirements or take advice before acting.